All Forum Posts by: Michael Peters

Agreed as a PM we structure our contracts so we only get paid when the owner does.  You'll have to look at the agreement.  We've set up a plan to limit as many nonpayments as possible.  I understand his concern, tenants share the same, but he should be focusing on mitigating that fear instead of asking for a handout.

I think we all could all draw a parallel to selecting a qualified applicant. If someone has a sporadic employment or tenancy I'm sure any good landlord would dig deeper either into social media, their bank statements, verifying employment, inspecting the condition of their car, or even requesting a walk through of their current residence. We're simply looking to protect our investment and ensure we select someone who will treat the property with respect.

@John Teachout I totally agree that they are personal questions and some may find it uncomfortable to answer.  Losing a job is hurts there is no question about it.  Having to ask a family member for assistance or filing for unemployment doesn't feel good.  

But as the agent of the owner I cannot in good conscience go to them and ask them to shoulder the financial burden in place of the tenant if I don't do my due diligence to ensure it is warranted.  Some people will need help and we'll do what we can to help weather the storm.  Others will simply try to take the the easy route and a few will try to take advantage of the situation.  As much as its uncomfortable for PM and Landlords our job is to separate out who truly needs the help and deserves it.  If you could only shoulder the burden of 1 of your 2 houses wouldn't you want to save it for the tenant that truly needs it and not just the one that asks first?  In the long run wouldn't asking the tough questions now both benefit the tenant and owner in the long run?

I've seen a lot of spirited arguments over a REI responsibility during the onset of this pandemic. As a property manager for over 300 units, many of whom are owned by investors with 1-2 properties to their name, I don't have the luxury to not collect rent for our owners. There are those that have been truly hurt, and more will surely follow, but a plan needs to be in place to ensure tenants are simply going for the easiest option. From my perspective prorating rent is a last resort and only available to those that truly need it and have shown a willingness to work with us on a solution.

Our process of verifying the tenants have explored every available option mirrors closely to Brandon Turners recent video.  As a responsible PM we need to be verifying the tenants claims of hardships before presenting any kind of work around to our owners.  I've drafted a simple form I intend to send out to anyone that reaches that stage.  I would love some constructive criticism on the questions below or if there is a better route.  Anyone that was approved for relief or prorated rent would sign a lease addendum outlining the new terms approved by the owner.

https://www.youtube.com/watch?v=1CLa0UJCn3w

Please take a few moments to tell us how COVID-19 has affected your household and what steps you have taken so far?

Have you lost your employment or seen a drastic reduction in paid time due to COVID-19?

Have you applied for unemployment? If so when?

Have you explored other temporary employment opportunities? If so where have you applied?

Have you reached out to friends or family to provide assistance?

Have you applied to the local government assistance programs? If so what programs and when?

I agree with @Anthony Wick.  Each States time frame is different but I wouldn't mail a deposit out any earlier then a few days before the cut off.  I make sure to verify that the final water bill is paid before sending it out since in Iowa it follows the property and not the person.  Nothing worse then finding a few hundred dollars in utilities after you send back the deposit.  No matter how thorough your move out inspection some items you just can't see until someone lives in the house.  Use all the time you have and don't feel pressured to send it back until you are completely satisfied.

Last note some tenants ask for items in writing before they move out.  I did that once and never will I make the same mistake again.  

Here is the letter I received.  Fireplace was boarded up prior to their move in and noted on their condition catalog.  We did replace the entire HVAC system so not sure how they were confused there.  Definitely will not be getting the full deposit back based on my last visit.

@Joe Splitrock Looking at my records it was a notice to cure or quit so I won't be able to hold them for marketing.  I'll make sure I ammend my practice to send a 7 day notice warning them of additional action as the first step going forward.

@Kirk R. That is a good analogy.  There was already some pet damage so I wasn't willing to let the violation slide.  Its a good home so I'm not worried about being able to get it rented again.

I could maybe see a judge being more favorable on a tenant that moved as an issue was happening, but waiting months to pull that card, regardless of the dog issue, doesn't seem credible.  Has anyone gone to court over an issue like that in the past?  The tenant just seems like a I'll take you to court on principle kind of person and my gut has been right with those people so far.

@Tchaka Owen I typically wouldn't bring someone to court unless there was a large sum due.  The master bedroom was saturated with urine so we'll see how they leave it.  Collects can deal with any amount due.  If anything hopefully future landlords will find it during a background check and give pause.

@Theresa Harris Thankfully they indicated a specific date and have utilities set to shut off as well so that should make turn over clean at least.

@Anthony Wick Well thankfully they were terrible at answering the phone so everything regarding the hvac and their recent move out is via email.  I also have learned to take a video and 200+ photos of properties with this type of situation.  If I have to charge someone for new damage or cleaning I want to make sure every single thing inch is documented.  Tenant complaints stop real fast when they get a link to before and after pictures.

@Randall Jacobs I'm currently prepared to prorate rent that cannot be paid but it would be split up over a handful of months not to exceed their current lease.  I'm working with my attorney now but I don't want those payments to exceed 1.2x rent to ensure its still affordable and would be asking tenants to sign a longer lease to accommodate the rent forbearance.  I don't know about you but I only have one tenant that has ever honored a payment agreement after move out.

A plan in place is great, but I wouldn't reach out about anything proactively.  Those that need the help will ask for it.  I'm currently requiring proof any financial burden specifically caused by COVID-19 before any payment accommodations are made.  I also have a list of local services and unemployment information that the tenant will be required to use before I make an accommodations.  We need to be understanding in these situations but tenants will also almost always go the easiest route which in many of their eyes is asking for a discount when their are services already in place.

Agree with @Account Closed a lockout shouldn't stop a move in.  I've moved to a full automated move out process equipped with video walk throughs that explain the process and what its we look for in regards to cleaning and how the property should be left for a tenant to get their full deposit back.  

For showings we are making a video of each occupied property and using that with our vacant marketing photos to advertise the property.  No unnecessary trips which all our current tenants have appreciated.  Really wanting to jump on the virtual tour band wagon as well.

I'm in the camp that not marketing a property prior to it being move in ready is wasted time and vacancy.  Yes I agree you get better results when its ready but I also see concerns with someone needing to move in asap and not planning ahead being a potential issue.  

I would tell the tenant you will be completing a tour of the property to complete a video walk through to show to potential tenants.  You'll be wearing gloves and a mask and will be in and out in 10 minutes.  They can wait in their car if it makes them feel safer.  This will allow you to market the property without having to bring strangers into the tenants home unnecessarily and help to accommodate her requests.  Not allowing access is not acceptable and in violation of the lease.  Courts suspended evictions but a judge can still have a police officer accompany you to the property.

Live in Des Moines, Iowa and recently found a tenant with an extra dog on the property.  Inherited tenants with 3 dogs already on the lease.  We served a 7 day notice of breach of lease requesting the dog be removed.  I just want to say I love dogs, but these tenants were not properly caring for them or keeping the property clean.  A few days later the tenant walks in to hand over a 7 day notice to terminate the lease citing that the fireplace didn't work at their 2018 move in and that their HVAC unit was replaced in the Fall of 2019 and it took 4 days, in mild weather I might add, due to the insurance claim delay.

Clearly they've done some online research and are trying to use those items to get out of the lease that ends 8/31.  I don't believe they have a legal leg to stand on and this will end up in court.  We'll start marketing and charge the tenants marketing expenses per state law.  Just curious to see how others handle these situations or how to avoid them in the future.